Your topic Could we lose the mortgage interest deduction? was interesting when I found it on Friday searching for list of tax write offs as I also have articles and information posted on this subject. Thank You… Steve Noel Sr….

What Harry doesn’t understand is that nothing has changed in thousands of years. The basics or the fundimentals never change. It’s like the apple falling from the tree. It never has changed and never will change No matter how much man would like to change gravity. He can’t. Man can’t change the fundimentals of economics either. Instead of learning to live within the paramaters of something that will never change. Mankind gets this idea that somehow we’re bigger; better; smarter; somehow more knowledgeable that people from the past. He doesn’t realize that there “IS NOTHING NEW”. Anything that could ever have been thought of has been thought of and been tried many times over in the thousands of years of mankind. Yes. The world and this country have changed over the past 80 years. As recently as this last election. Ron Paul made the statement that” I’m afraid that what we have learned from history is. That we have learned nothing from history”. Get away from Ecno.101. Conjure up some variation of something and we will screw ourselves “AGAIN & AGAIN”. Duh.

Tie a string to the tooth then to the door knob and slam the door shut. Or spend days nursing it until it falls out.

Bill Bonner is basing his comments on knowledge of fundamental economic principles which apparently have not been grasp by many of the responders. For example: Jason seems not to understand that on net balance government and its employees are not producers of products, yet they consume products. In other words, without government interference, taxpayers produce commodities and exchange them with each other via the medium of exchange called money. In this type of environment production and consumption are balanced and production must precede consumption. But government intervenes and takes part of the producers’ claims to commodities (money) and consumes them. This type of environment is inherently unbalanced because there is (government) consumption without production. Money facilitates this legal plunder. In ancient civilizations (such as Sumer), government directly confiscated commodities and stored them in warehouses called ziggurats and there was no deception about what was happening. This is not a free market exchange – it’s a one way street. Taxpayers produce and government consumes.

Eventually, producers tire of having their productive efforts confiscated and they reduce, or stop, producing. When this happens, the entire society is in serious trouble – it is already happening in the U.S. This is exactly what happened to Rome and they sank into a 700 year dark age.

Since increasing government means increased consumption without production, the result is scarcity for producers – and eventually for government. It should be obvious that every addition to the size of government increases the burden on producers. Bill Bonner is absolutely correct. (Incidently, government employees at all levels are not taxpayers from a basic economics viewpoint, even though they file the same kind of paperwork as taxpayers.)

A final comment about the comparison of the U.S. with Japan. The Japanese collapse was caused by expansion of the money supply which is exactly the same thing that is causing ours. What are we doing to solve the problem? Vastly expanding the money supply, just as the Japanese did and still are. Yes, there is a basis for direct comparison of the Japanese debacle with our own. The philosophy seems to be that dramatically accelerating the cause of the problem, government spending and creation of money by banks, will somehow solve it. Indeed it will – there will be a total collapse of the economy (and perhaps society). Then maybe we can get back on the upward and onward road again – provided there are enough survivors with the brains to figure out the problem.

I just wonder if he will show up here the day US falls facedown and his apple stocks sell for $10 bucks…you know, the day no one shows up at treasury auctions, the day Us debt service becomes unsustainable, the day central banks start unloading dollars and dollar-denominated treasuries in the market…

1m x 1m = 1 trillion
1 trillion/365 = 2739
We owe 12 of these now and 52 of them total, a total that is constantly rising as well, that’s 52 million a day every day for 2739 years.

How are we going to pay this?

Hope my calculations are not wrong because the numbers are so gigantic it would be easy for me to make a mistake.

Unsustainable!

Andy